1-For the first time, dairy cooperatives are going to have to pay the same basic formula price to their members as the proprietary handlers have to pay.
2-No longer will a so-called make allowance be deducted from the basic formula price which has always lowered the price to all dairy farmers.
3-All buying handlers will take possession of the milk once the milk is pumped into a tanker.
4-The dairy farmers’ price will be determined by the national average cost of production as determined by the Economic Research Service, a division of the USDA. This basic formula price will be the Class II price, and all milk used for manufacturing purposes will be Class II. The Class I price will be determined in each Federal or State order by using the Class II price plus existing Class I differentials.
6-Hauling charges are contained in the ERS’ cost of production figures.
7-As the law now stands, any amendment to a Federal Milk Marketing Order that requires a vote, and if the vote happens to be a unanimous no vote, then the order is terminated. This bill does not allow a Federal Order to be eliminated in event of a negative vote on an amendment.
8-The Secretary of Agriculture will have the responsibility to be sure that no excessive dairy products can be brought into the United States to damage the prices paid to dairy farmers. This is a very important item.
9-The controversial PPD (Producer Price Differential) will be eliminated and will no longer be a curse on dairy farmers’ milk checks.
There is more to the bill, but these are some of the important points.
Arden Tewksbury is manager of Pro-Ag
